When someone opens a credit card in your name without your permission, you are a victim of identity theft. Your immediate action should be to address the fraudulent account directly and then take comprehensive steps to protect your identity and financial well-being.
Immediate Steps to Take When an Unauthorized Credit Card Appears
If you discover a credit card opened in your name that isn't yours, swift action is crucial to minimize potential damage to your credit and financial standing.
1. Contact the Credit Card Issuer
This is the very first step you should take.
- Call the company where the fraud took place. Explain to the credit card issuer that someone opened an account in your name and that they are trying to steal your identity.
- Report the fraudulent account. Request that the account be closed immediately and that any associated charges be removed.
- Request a fraud affidavit. Many card issuers will ask you to complete a fraud affidavit to formally dispute the charges and confirm you did not authorize the account.
- Obtain documentation. Get a confirmation number or written acknowledgment of your fraud report.
2. Check Your Credit Reports
Unauthorized accounts often appear on your credit report. Reviewing your reports can help you identify other fraudulent activity you might not be aware of.
- Access your reports. You are entitled to a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once every 12 months via AnnualCreditReport.com.
- Scrutinize for irregularities. Look for accounts you didn't open, inquiries you didn't authorize, or unfamiliar addresses.
- Dispute any inaccuracies. If you find fraudulent accounts or errors, dispute them directly with each credit bureau.
3. Place a Fraud Alert on Your Credit
A fraud alert makes it harder for identity thieves to open new accounts in your name.
- Contact one credit bureau. When you place an initial fraud alert with one of the three major credit bureaus (Equifax, Experian, or TransUnion), that bureau must notify the other two.
- Verification required. Businesses must take steps to verify your identity before extending credit.
- Initial vs. Extended. An initial fraud alert lasts for one year. If you file an Identity Theft Report with the Federal Trade Commission (FTC), you can request an extended fraud alert, which lasts for seven years.
4. Consider a Credit Freeze
A credit freeze offers stronger protection by preventing anyone from accessing your credit report to open new lines of credit unless you temporarily unfreeze it.
- Contact all three bureaus. You must place a credit freeze with each of the three major credit bureaus individually.
- No cost. Placing and lifting a credit freeze is free.
- Impact on new credit. While a credit freeze is in place, you will need to unfreeze your credit before applying for new loans or credit.
Report Identity Theft
Beyond addressing the credit card itself, it's vital to formally report the identity theft to authorities.
1. File an Identity Theft Report with the FTC
The Federal Trade Commission (FTC) is the primary government agency for identity theft complaints.
- Visit IdentityTheft.gov. Use the FTC's dedicated website, IdentityTheft.gov, to report the incident.
- Receive a recovery plan. The FTC will provide you with a personalized recovery plan and an official Identity Theft Report. This report is crucial for disputing fraudulent accounts and charges, and for obtaining information from creditors.
2. File a Police Report
While not always mandatory, filing a police report can be beneficial, especially if you know who committed the crime or if a creditor or credit bureau requires one.
- Contact your local police department. Explain that you are a victim of identity theft.
- Provide documentation. Bring your FTC Identity Theft Report and any other relevant documentation (e.g., communications with the credit card issuer, credit reports).
- Keep a copy. Obtain a copy of the police report or at least the report number.
Ongoing Protection and Monitoring
Identity theft can be a long-term issue, so continued vigilance is essential.
1. Monitor Your Accounts Regularly
- Review bank and credit card statements. Check for any unfamiliar transactions.
- Set up alerts. Many financial institutions offer alerts for unusual activity, large transactions, or changes to your account.
- Be wary of unexpected mail. Look out for bills or account statements for services you didn't authorize.
2. Secure Your Personal Information
- Change passwords. Update passwords for your online banking, email, and other important accounts. Use strong, unique passwords and consider a password manager.
- Be cautious online. Avoid clicking on suspicious links or providing personal information to unsolicited requests via email, phone, or text.
- Shred documents. Properly dispose of documents containing personal information.
Key Contacts for Identity Theft
Entity | Purpose | Contact Information (General) |
---|---|---|
Credit Card Issuer | Close fraudulent account, dispute charges. | Refer to the contact information on the credit card or their website. |
Equifax | Fraud alerts, credit freezes, dispute credit report errors. | Equifax.com |
Experian | Fraud alerts, credit freezes, dispute credit report errors. | Experian.com |
TransUnion | Fraud alerts, credit freezes, dispute credit report errors. | TransUnion.com |
FTC | Report identity theft, get recovery plan. | IdentityTheft.gov |
Local Police | File a police report (if applicable). | Non-emergency number for your local police department. |
By taking these steps promptly and diligently, you can effectively address the unauthorized credit card and safeguard your financial identity.